Toronto's housing market showed signs of strengthening in May, with sales up 3% compared to last year while both new listings and active inventory declined. As available inventory continues to be absorbed, buyers are facing slightly more competition than they were earlier this year.
Lower borrowing costs have helped improve affordability, with the prime rate now sitting at 4.45%, down from 5.00% a year ago. Combined with softer home prices, this has encouraged more buyers to re-enter the market.
The average selling price in Toronto was $1,108,292 in May, down 4% year-over-year. Detached homes saw the largest price adjustment, declining 6% to $1,610,988. Townhouses and condos also experienced price declines of 6% and 5%, respectively, while semi-detached home prices remained stable compared to last year.
While the market continues to favour buyers overall, improving sales activity and declining inventory suggest conditions may be gradually becoming more balanced. Buyers still benefit from increased affordability compared to previous years, while sellers who price strategically are seeing stronger engagement.
With affordability improving and inventory trending lower, the second half of the year could look different from the first. For buyers and sellers alike, understanding today's opportunities may be just as important as anticipating tomorrow's market.
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Average Toronto home prices by property type in May:
➕Detached $1,610,988 [-6% vs. 2025]
➕Semi-detached $1,293,268 [0% vs. 2025]
➕Townhouse $953,982 [-6% vs. 2025]
➕Condo $673,841 [-5% vs. 2025]
If you’re thinking about making a move this year, let’s talk strategy.
••••••
Data presented is for the City of Toronto only. Source: TRREB.
Lower borrowing costs have helped improve affordability, with the prime rate now sitting at 4.45%, down from 5.00% a year ago. Combined with softer home prices, this has encouraged more buyers to re-enter the market.
The average selling price in Toronto was $1,108,292 in May, down 4% year-over-year. Detached homes saw the largest price adjustment, declining 6% to $1,610,988. Townhouses and condos also experienced price declines of 6% and 5%, respectively, while semi-detached home prices remained stable compared to last year.
While the market continues to favour buyers overall, improving sales activity and declining inventory suggest conditions may be gradually becoming more balanced. Buyers still benefit from increased affordability compared to previous years, while sellers who price strategically are seeing stronger engagement.
With affordability improving and inventory trending lower, the second half of the year could look different from the first. For buyers and sellers alike, understanding today's opportunities may be just as important as anticipating tomorrow's market.
— — --
Average Toronto home prices by property type in May:
➕Detached $1,610,988 [-6% vs. 2025]
➕Semi-detached $1,293,268 [0% vs. 2025]
➕Townhouse $953,982 [-6% vs. 2025]
➕Condo $673,841 [-5% vs. 2025]
If you’re thinking about making a move this year, let’s talk strategy.
••••••
Data presented is for the City of Toronto only. Source: TRREB.
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